Question 1

What are turnkey projects? What are its advantages and disadvantages compared to other modes of entry?

Accepted Answer

Turnkey projects refer to projects in wh

Question 2

Innovation-seeking firms often single out the most efficient locations featuring a combination of scale of economies and low cost factors.

Accepted Answer

A) True 
 B)False

Question 3

_____ refers to the amount of resources committed to entering a foreign market.

Accepted Answer

A)  Scale of entry 
B)  Mode of entry 
C)  Institutional distance 
D)  Benchmarking 
A)  Scale of entry 
B)  Mode of entry 
C)  Institutional distance 
D)  Benchmarking

Question 4

An acquisition is an example of a wholly owned subsidiary.

Accepted Answer

A) True 
 B)False

Question 5

Licensing and franchising are examples of equity modes of entry.

Accepted Answer

A) True 
 B)False

Question 6

One of the late-mover disadvantages is the establishment of entry barriers by the first-mover.

Accepted Answer

A) True 
 B)False

Question 7

Non-equity modes of entry include acquisitions and wholly-owned subsidiaries.

Accepted Answer

A) True 
 B)False

Question 8

Industrial parks refer to the clustering of economic activities in certain locations.

Accepted Answer

A) True 
 B)False

Question 9

How do foreign firms crack new markets against strong local competition?

Accepted Answer

The answer focuses on two core perspecti

Question 10

Greenfield operations are similar to acquisitions in that they are both examples of _____.

Accepted Answer

A)  partially owned subsidiaries 
B)  wholly owned subsidiaries 
C)  non-equity mode of entry into foreign markets 
D)  equity mode of entry into foreign markets limited to a contractual agreement 
A)  partially owned subsidiaries 
B)  wholly owned subsidiaries 
C)  non-equity mode of entry into foreign markets 
D)  equity mode of entry into foreign markets limited to a contractual agreement

Question 11

Indirect exports are the most basic mode of entry,capitalizing on economies of scale in production concentrated in the home country.

Accepted Answer

A) True 
 B)False

Question 12

The existence of multiple currencies and the resultant currency risks can be viewed as informal trade and investment barriers.

Accepted Answer

A) True 
 B)False

Question 13

What are the two schools of thought that have emerged concerning cultural distances?

Accepted Answer

Cultural distance is the difference betw

Question 14

The resource-based view suggests that firms need to take actions deemed legitimate and appropriate by the various formal and informal institutions governing market entries.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is an advantage of R&D contracts?

Accepted Answer

A)  Easy to negotiate and enforce contracts 
B)  Negligible threat from competitors 
C)  Continuous improvement of core innovation capabilities 
D)  Ability to tap into the best, cost-effective locations 
A)  Easy to negotiate and enforce contracts 
B)  Negligible threat from competitors 
C)  Continuous improvement of core innovation capabilities 
D)  Ability to tap into the best, cost-effective locations

Question 16

Greenfield operations and acquisitions have complete equity and operational control.

Accepted Answer

A) True 
 B)False

Question 17

The distinction between _____ is what defines an MNE from a firm that merely exports or imports.

Accepted Answer

A)  direct and indirect exports 
B)  licensing and franchising 
C)  small- and large-scale of entry 
D)  equity and non-equity modes of entry 
A)  direct and indirect exports 
B)  licensing and franchising 
C)  small- and large-scale of entry 
D)  equity and non-equity modes of entry

Question 18

Which of the following is an advantage shared by both greenfield operations and acquisitions?

Accepted Answer

A)  Protection of know-how 
B)  Fast entry speed 
C)  Add new capacity to industry 
D)  Low development costs 
A)  Protection of know-how 
B)  Fast entry speed 
C)  Add new capacity to industry 
D)  Low development costs

Question 19

Emerging MNEs primarily lack proprietary ownership of technology compared to MNEs from developed economies.

Accepted Answer

A) True 
 B)False

Question 20

Efficiency-seeking firms go to countries that have _____.

Accepted Answer

A)  an abundance of natural resources and related transport and communication infrastructure 
B)  a strong demand for their products and services 
C)  world-class innovations (innovative individuals, firms, and universities) 
D)  economies of scale and abundance of low-cost factors 
A)  an abundance of natural resources and related transport and communication infrastructure 
B)  a strong demand for their products and services 
C)  world-class innovations (innovative individuals, firms, and universities) 
D)  economies of scale and abundance of low-cost factors

What are turnkey projects? What are its advantages and disadvantages compared to other modes of entry?

Innovation-seeking firms often single out the most efficient locations featuring a combination of scale of economies and low cost factors.

_____ refers to the amount of resources committed to entering a foreign market.

An acquisition is an example of a wholly owned subsidiary.

Licensing and franchising are examples of equity modes of entry.

One of the late-mover disadvantages is the establishment of entry barriers by the first-mover.

Non-equity modes of entry include acquisitions and wholly-owned subsidiaries.

Industrial parks refer to the clustering of economic activities in certain locations.

How do foreign firms crack new markets against strong local competition?

Greenfield operations are similar to acquisitions in that they are both examples of _____.

Indirect exports are the most basic mode of entry,capitalizing on economies of scale in production concentrated in the home country.

The existence of multiple currencies and the resultant currency risks can be viewed as informal trade and investment barriers.

What are the two schools of thought that have emerged concerning cultural distances?

The resource-based view suggests that firms need to take actions deemed legitimate and appropriate by the various formal and informal institutions governing market entries.

Which of the following is an advantage of R&D contracts?

Greenfield operations and acquisitions have complete equity and operational control.

The distinction between _____ is what defines an MNE from a firm that merely exports or imports.

Which of the following is an advantage shared by both greenfield operations and acquisitions?

Emerging MNEs primarily lack proprietary ownership of technology compared to MNEs from developed economies.

Efficiency-seeking firms go to countries that have _____.

Globalizing Business

Understanding Formal Institutions: Politics, Laws, and Economics

Emphasizing Informal Institutions: Cultures, Ethics, and Norms

Leveraging Resources and Capabilities

Trading Internationally

Investing Abroad Directly

Dealing with Foreign Exchange

Capitalizing on Global and Regional Integration

Growing and Internationalizing the Entrepreneurial Firm

Managing Global Competitive Dynamics

Making Alliances and Acquisitions Work

Strategizing,Structuring,and Learning around the World

Competing on Marketing and Supply Chain Management

Managing Human Resources Globally

Financing and Governing the Corporation Globally

Managing Corporate Social Responsibility Globally

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Exam 10: Entering Foreign Markets

What are turnkey projects? What are its advantages and disadvantages compared to other modes of entry?

Innovation-seeking firms often single out the most efficient locations featuring a combination of scale of economies and low cost factors.

_____ refers to the amount of resources committed to entering a foreign market.

An acquisition is an example of a wholly owned subsidiary.

Licensing and franchising are examples of equity modes of entry.

One of the late-mover disadvantages is the establishment of entry barriers by the first-mover.

Non-equity modes of entry include acquisitions and wholly-owned subsidiaries.

Industrial parks refer to the clustering of economic activities in certain locations.

How do foreign firms crack new markets against strong local competition?

Greenfield operations are similar to acquisitions in that they are both examples of _____.

Indirect exports are the most basic mode of entry,capitalizing on economies of scale in production concentrated in the home country.

The existence of multiple currencies and the resultant currency risks can be viewed as informal trade and investment barriers.

What are the two schools of thought that have emerged concerning cultural distances?

The resource-based view suggests that firms need to take actions deemed legitimate and appropriate by the various formal and informal institutions governing market entries.

Which of the following is an advantage of R&D contracts?

Greenfield operations and acquisitions have complete equity and operational control.

The distinction between _____ is what defines an MNE from a firm that merely exports or imports.

Which of the following is an advantage shared by both greenfield operations and acquisitions?

Emerging MNEs primarily lack proprietary ownership of technology compared to MNEs from developed economies.

Efficiency-seeking firms go to countries that have _____.

Globalizing Business

Understanding Formal Institutions: Politics, Laws, and Economics

Emphasizing Informal Institutions: Cultures, Ethics, and Norms

Leveraging Resources and Capabilities

Trading Internationally

Investing Abroad Directly

Dealing with Foreign Exchange

Capitalizing on Global and Regional Integration

Growing and Internationalizing the Entrepreneurial Firm

Managing Global Competitive Dynamics

Making Alliances and Acquisitions Work

Strategizing,Structuring,and Learning around the World

Competing on Marketing and Supply Chain Management

Managing Human Resources Globally

Financing and Governing the Corporation Globally

Managing Corporate Social Responsibility Globally

Filters